Energy XXI downgraded at Howard Weil, price target cut at Canaccord

|About: Energy XXI Ltd. (EXXIQ)|By:, SA News Editor

Energy XXI (EXXI -1.5%) is downgraded to Sector Perform from Outperform with a reduced $28 price target from $34 at Howard Weil, which says that given the company's prior issues integrating the Exxon acquisition, investors could question why the integration of the EPL acquisition will perform any better.

EXXI is now an execution story, the firm says, and its ability to meet or exceed production guidance as well as being more transparent with investors about future expectations will drive performance going forward.

Canaccord Genuity maintains its Buy rating, still liking EXII for its oil-weighted asset base, the Gulf of Mexico horizontal drilling program, a history of generating free cash, and potential upside from its exploration program, but cuts its price target to $30 from $36 following disappointing production guidance (